Analysis: Bitcoin’s July Rebound May Echo 2022 Bear-Market Pattern

Bitcoin has risen about 10% so far this month, putting it on track for its strongest July gain in the past four years. But some analysts say the short-term rebound could still be followed by another correction.

Cointelegraph reported on July 11, citing CoinGlass data, that Bitcoin was up about 9.5% in July. That marks its biggest July increase in four years.

Still, the rally is not yet being viewed as a clear bullish reversal. In 2022, Bitcoin plunged about 38% in June before rebounding about 17% in July. It then fell another 14% in August and 3% in September, prolonging the bear market.

Daan Crypto Trades said Bitcoin has so far been following its average July pattern, though it is still too early in the month to draw conclusions. He added that the third quarter has historically been Bitcoin’s weakest quarter, even when bull-market periods are included.

Rekt Capital said Bitcoin’s current price action also resembles past bear-market moves. If history repeats, Bitcoin could continue its relief rally through the second half of July before giving back most of those gains in August. He said the cryptocurrency could then form a typical bear-market bottom before year-end.